US Airways-American Airlines merger cleared for takeoff
CNNMONEY: The Justice Department has reached a settlement with American Airlines and US Airways that requires the airlines to sell facilities at seven airports in order to complete their planned merger. The deal announced Tuesday allows low cost airlines to increase their presence at many of the nation’s largest airports.
Under the agreement, American and US Airways will sell to low-cost carriers 104 slots at Washington’s Reagan National, 34 slots at New York’s LaGuardia, and rights to gates at Boston’s Logan, Chicago’s O’Hare, Dallas’ Love Field, Los Angeles and Miami airports.
In August, the Justice Department filed an antitrust suit against the airlines, arguing that the combination would reduce choices for customers by giving the combined carrier a stranglehold at certain major airports. At Reagan National, for instance, the two airlines would have controlled 69% of the take-off and landing slots.
To read more on the story click here.